When Intervention Misfires
This is the mentality of our economic leaders-
The consensus is that there hasn't been enough stimulus. It was a political thing. Too much headwind up against what they should have done.
It's almost futile to resist.
We should not fight the Fed, just go with the flow.
The Fed is the representative of finance, not the economy. It is by the banks and for the banks.
The popular economist is confused. They don't see that the financial system is not the economic system.
They can't see the relative size of the financial system over time.
Of course, they can't see the looming monetary system, which is the main tributary for the unchecked growth of finance.
This basic corruption has led to a trickle down effect of fraud and corruption.
In fact, with all the attention given to non-dischargeable student loans, the uglier and opposite phenomenon is developing in the retirement world.
As if on cue from the "legal" fraud modeled by the financial masters (soon to be retired), with the help of attorneys who specialize in bankruptcy they have proliferated the loading up of debt followed by default.
Seniors close to entering retirement age are being counseled on the merits of using credit to prepare for retirement and subsequently defaulting according to bankruptcy laws that do not affect future retirement benefits.
Obviously, this has a negative effect, akin to yet another form of capital misallocation.
The key is understanding the difference between the economy and finance with the massive growth of fiat credit fueled finance that enriches .001% of the population. Hence, it is the real cause of the inequality everyone sees but fails to understand.
Finance is bloated and desperate.
Its beating heart is the collateral that supports its liquidity.
It is desperate for a perceptual source.
Nearly 100 years ago, the Bolsheviks ratified the actions of the peasants who seized private land throughout Russia and redistributed it among themselves. The Bolsheviks viewed themselves as representing an alliance of workers and peasants and memorialized that understanding with the Hammer and Sickle on the flag and coat of arms of the Soviet Union.
All Russian banks were nationalized.
Private bank accounts were confiscated.
The Church's properties (including bank accounts) were seized.
All foreign debts were repudiated.
Control of the factories was given to the Soviets. Wages were fixed at higher rates than during the war and a shorter, eight-hour working day was introduced.
As the winds of politics blow the stink of manufactured sentiment, we are in for a new Bolshevik attempt to go after any and all potential capital.
It threatens to suffocate the underlying economic system which unnecessarily clings to its teats.
The monkey saved the fish from drowning and then the fish died.
Instead of learning that fish can't breathe out of water, the monkey assumed he didn't do enough to save the fish.
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